People check out Coach handbags during the eighth China International Import Expo in Shanghai on Nov 6. Coach is a brand owned by US-based luxury company Tapestry. GAO YANG/FOR CHINA DAILY
A string of upbeat earnings reports from global luxury and lifestyle apparel companies show that Chinese shoppers are returning to premium spending, boosted by localized and culturally relevant products for the Chinese market from these brands.
From accessible luxury handbags to high-end outerwear and classic US fashion, brands including Tapestry Inc, Ralph Lauren and Canada Goose Holdings all reported recent quarterly sales surges in China, driven by Generation Z shoppers — those born roughly between 1997 and 2012 — localized marketing campaigns and strong Chinese New Year demand.
For foreign apparel companies, China is once again becoming a critical growth engine.
Tapestry, parent company of Coach and Kate Spade New York, delivered some of the strongest signs of momentum. The company said China sales jumped 55 percent in the fiscal third quarter ended March 28, helping drive a 30 percent increase across the Asia-Pacific on a constant-currency basis.
The surging business resulted from a strategy of focusing on young consumers. The company added more than 2.4 million new customers globally during the quarter, with Gen Z consumers accounting for more than 35 percent of those acquisitions. Coach handbags proved especially popular, with unit sales rising more than 20 percent alongside low double-digit increases in average selling prices. The brand has established a presence in over 90 cities nationwide, with more than 350 stores spanning tier-one to tier-four markets. It will soon roll out targeted plans for nearly 200 additional cities this year.
The performance shows strong evidence that Chinese consumers remain willing to spend on brands that combine craftsmanship, accessibility and cultural relevance.
CEO Joanne Crevoiserat said Tapestry’s focus on younger shoppers and localized engagement was helping fuel growth in China.
To coincide with Chinese New Year celebrations, Coach partnered with Chinese streetwear label Clot on an immersive campaign that blended gaming, cafes, exclusive merchandise and community events. The initiative was designed to deepen connections with younger consumers while reinforcing the brand’s local relevance.
Crevoiserat said during the company’s earnings call, “Our strategies of getting behind a real focus on Gen Z consumers is driving our business with new customer acquisition.”
Tanks to chinadaily.com.cn
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